SCA Timber and Persson Invest form new company

1 March, 2010

SCA and the Persson Invest Group have announced plans to form a joint sawn timber products company called Gallo AB.

The venture will consist of Persson Invest’s two sawmills Gällö and Tjärnvik and SCA’s Jämtlamell mill in Stugun.

Both sawmillers already co-operate in the sale of sawn products in certain markets and raw material procurement.

Persson said the Gallo operation could utilise SCA’s sales organisation, improve production efficiency and secure a more reliable supply of raw materials.

SCA Timber said adding the extra capacity would enable it to offer larger volumes, making it a more attractive partner to major wood products customers in Europe.

The agreement to form Gallo AB will be examined by the compeitition authority and will be subject to co-determination at both companies.

SCA and Persson plan to take equal stakes in the new company.